Terns Pharmaceuticals Acquired by Merck — Healthcare M&A

Merck has announced the acquisition of Terns Pharmaceuticals in a transaction valued at about $6.7 billion, as the strategic buyer seeks to expand its oncology pipeline. The deal is structured as a platform acquisition, with both companies’ boards approving the transaction. Merck expects to close the transaction in the second quarter, subject to customary conditions and a majority of Terns stockholders tendering their shares in a tender offer initiated by a Merck subsidiary.

Terns, based in New Jersey, focuses on developing oncology therapies, and the acquisition aligns with Merck’s broader efforts to strengthen its cancer portfolio ahead of a key patent expiration for Keytruda in the next two years. For Merck, adding pipeline assets is intended to support long-term growth in oncology and reduce reliance on existing product revenues as competitive dynamics change.

The announcement indicates the transaction will be carried out through a tender offer process, requiring Terns shareholders to tender a majority of their shares for the deal to proceed. Financial terms beyond the headline valuation were not clearly specified in the available information, but the timing target remains the second quarter, pending regulatory and shareholder approval milestones.